Savings accounts

I just have a problem with giving banks and credit unions basically free use of my money. If enough people are willing to give them free use of their money then they don't have to change their ways.

My bank works for me, I don't work for the bank. If they won't work for me, time to find a new one.

I hear you, but the reality is they sell you a service to you and you either buy or you don’t.
 
A bank with no deposits doesn't stay in business for long. Doesn't hurt to inform them of this. Sometimes they listen. My bank did.
I agree - if you sell a service and no customers buy you are out of business. I was just reacting to the old saw that the bank is “working for you”. Banks, mortgage companies, social media companies, etc - they work for themselves, not for you. To the extent they make you happy, they do so because your return business makes them money.
 
I agree - if you sell a service and no customers buy you are out of business. I was just reacting to the old saw that the bank is “working for you”. Banks, mortgage companies, social media companies, etc - they work for themselves, not for you. To the extent they make you happy, they do so because your return business makes them money.
Working for me means they work for my business. Competition provides choices. Lot of banks out there if you hadn't noticed.
 
Another online bank not mentioned is CIT Bank (2.45%), which I use. I absolutely agree with the recent longer post that this type of account should be used for the 3 to 6-month fund, not the emergency savings fund. My wife and I plan to build ours up as I realize we have been so aggressive in saving in 401ks and IRAs that we don't have much cash for big-ticket items (new roof, HVAC, etc) or won't have much access to cash for living expenses if we retire early. While retiring early would be a nice problem to have, we're working on building that up this reserve through the online savings account.
 
Wow! Taking this all in is thought provoking!

Reason for savings account is for the sudden, unexpected expenses. Car repair, medical, etc...
We both put money each payday into the account. Direct deposit.
We are both maxed out to our employers 401K match, with a couple added percentage points.

She claims to like the security that there is a vault full of cash, when she goes to the bank. Not taking into account that our "funds" are electronically deposited. Also as she sits and pays our bills online.

Anotherr issue we both have is the hours of business the credit union is open.

Having gotten a new job further away, the gas for my truck is less than reasonable. 12.3 mpg. We have been looking towards a car. Not only to at least double the fuel milage, but one for taking trips with. (PA to FL, PA to Toronto)
Figured a slight car payment would equal amount spent on gas in truck in a months time.
Credit union wanted 6.49% for a car loan.
Wife wasn't happy with my response to that!
I calmed down, and told them that was fine under one condition. They pay 3% on our savings account.
Talk about deer in the headlights look!
They didn't agree with my terms.
 
She claims to like the security that there is a vault full of cash, when she goes to the bank. Not taking into account that our "funds" are electronically deposited.
Actually, the bank does not have a vault of cash (from you comment, I know you get this). They have a small safe that holds a few tens of thousands of dollars for daily transactions. The millions of dollars that are in people's accounts are just theoretical dollars on a computer database.
 
Actually, the bank does not have a vault of cash (from you comment, I know you get this). They have a small safe that holds a few tens of thousands of dollars for daily transactions. The millions of dollars that are in people's accounts are just theoretical dollars on a computer database.
102994
 
Depending on what tax bracket you're in, consider municipal bonds. Vanguard has a good variety of funds from money market to longer dated bond funds. Tax free income is always nice.
 
On letting the bank use my money for free, I prefer to look at it as they provide me a service for free. I keep 2-3 months expenses in an interest bearing checking account. The interest is peanuts. It's so low I don't know and I'm not going to bother to look it up.

But, I have no fees for online bill pay or ATM use including out of network. They manage electronic transactions for me and to get use my money. Fair deal.

Beyond that, money is in a taxable brokerage account with money market or stocks or in retirement accounts. I have no intent on making money from my 3 months savings which is OPs perspective as well as I read it.
 
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